What to Do If Your Car Is Stolen — And How to Protect Yourself

Thief is looking in the window of a car. — (Image credit: Shutterstock)

In 2024, more than 850,000 vehicles were stolen, according to the National Insurance Crime Bureau (NICB).

This year, my car will be among 2025’s tally, as it was stolen recently.

There seems to have been a crime wave in my city, with at least four friends experiencing auto theft in the span of a few weeks. I was hesitant to share personal details online, but I decided that if my article can help even one person prevent a costly, stressful theft, then it’s worth it.

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Here’s what I learned from having my car stolen, and how you can try to keep it from happening to you.

Simple steps to reduce your risk of auto theft

When it comes to preventing car theft, some steps are obvious — such as not leaving your keys in the car or letting it run unattended on the street.

But others aren’t as well known. One of the simplest and most effective things you can do is buy a Faraday pouch or case for your key fob. This small $5 investment can block thieves from hacking your key signal.

In recent years, Kia and Hyundai models have been frequent targets of key fob hacking, and in 2023, they topped the list of most-stolen vehicles, according to the National Insurance Crime Bureau (NICB). Both automakers have taken steps to address the issue.

If you often forget to lock your car, a digital car key or a remote-locking app on your phone could be a helpful solution. Some apps and devices can even automatically lock your car when you walk away or move out of range, adding an extra layer of security.

Anti-theft devices that help deter car thieves

Additionally, cars come with, or can be equipped with, a wide variety of anti-theft features. If your car doesn’t have any of these features, do some research to determine which ones you could add.

Some onboard anti-theft features include alarms and GPS trackers. An easy one to add yourself is a steering wheel lock. Some vehicles have immobilizers that prevent them from being hotwired, hood locks, battery disconnect switches and pedal locks.

If your car doesn’t have an onboard GPS tracker, hide an AirTag, Tile or other tracker inside the car to increase the chance of recovery. They cost about $20 and can make all the difference. This is often one of the first things police will ask about because it’s the best and easiest way to locate the vehicle.

Don’t forget to let your insurance company know that your car is equipped with anti-theft features because you might also qualify for a discount.

What your insurance covers if your car is stolen

Speaking of insurance, most auto policies offer little to no coverage for personal items stolen from your vehicle.

For example, if your car is stolen with your wedding ring inside, the ring likely won’t be covered unless it's protected under your home insurance or you've added extra coverage to your auto policy. That’s why it’s important to review your home insurance as well, since many policies cover personal belongings stolen from a car.

If you have a newer car, it might be worth considering general asset protection (GAP) insurance. Standard auto insurance only covers the car’s current market value — not what you still owe on your loan.

For example, if your insurer values your stolen car at $20,000 but you still owe $30,000, you’d be responsible for the $10,000 difference unless you have GAP coverage. Keep in mind that insurance adjusters often undervalue stolen vehicles, which makes GAP coverage even more important.

According to Car and Driver, GAP coverage averages $20 to $40 a year when added to an existing auto policy, depending on the insurer. You can also purchase it for a flat fee from a lender or dealership, usually for a few hundred dollars, but keep in mind, you’ll likely pay interest on that amount if it’s rolled into your loan.

It’s also a smart move to add rental reimbursement coverage to your auto policy. Many insurers offer this optional add-on to help cover transportation costs while you shop for a replacement vehicle. Just be aware there’s usually a daily cap.

For example, my insurer covered $40 per day — only half of what it actually cost to rent a car — but that coverage still saved me more than $1,000.

Explore some of today's best car insurance offers with the tool below, powered by Bankrate:

What to do immediately after your car is stolen

The number one thing to remember if your car is stolen is to report it immediately. Don’t wait. Here’s a list of all the entities you should notify:

Police
State DMV or equivalent agency (e.g., Secretary of State)
Your lender or leasing company
EZ-Pass or the operator of any other electronic toll collection device you might have
Your insurance company — If you delay, your insurance claim could be denied

If your wallet was in the vehicle, don’t forget to contact your credit card companies, banks, etc. Let the DMV know your license was stolen, as well.

Final thoughts on theft recovery and prevention

If your car is stolen, it’s important to be patient and prepare to be frustrated. In many cases, police won’t do much beyond flagging the vehicle and plates as stolen.

However, in 2023, more than 85% of stolen vehicles were recovered, according to the NICB. As further incentive to report your vehicle stolen immediately, cars reported stolen in the first 24 hours had a 34% same-day recovery rate that year.

To improve the chances of recovering your stolen vehicle, fully cooperate with the police and provide as much detailed information as possible. Stay proactive by checking in regularly — law enforcement may not always notify you if your car is found, especially if it’s recovered in another county or state.

If you’re not getting support from your local police department, consider reaching out to county or state law enforcement. You can also contact local elected officials for help. A friend of mine, whose car was stolen and GPS-tracked shortly after mine, was able to get assistance from state authorities when city police wouldn’t act on the vehicle’s location.

Jacob is the founder and CEO of ValueWalk. What started as a hobby 10 years ago turned into a well-known financial media empire focusing in particular on simplifying the opaque world of the hedge fund world. Before doing ValueWalk full time, Jacob worked as an equity analyst specializing in mid and small-cap stocks. Jacob also worked in business development for hedge funds. He lives with his wife and five children in New Jersey. Full Disclosure: Jacob only invests in broad-based ETFs and mutual funds to avoid any conflict of interest.